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LOANS
 9 Months Ended
Sep. 30, 2025
Receivables [Abstract]  
LOANS LOANS
Farmer Mac classifies loans as either held for investment or held for sale. Loans held for investment are recorded at the unpaid principal balance, net of unamortized premium or discount and other cost basis adjustments. Loans held for sale are reported at the lower of cost or fair value determined on a pooled basis.

Under the Agricultural Finance line of business, Farmer Mac has two segments – Farm & Ranch and Corporate AgFinance. The segments are characterized by similarities in risk attributes and the manner in which Farmer Mac monitors and assesses credit risk.
The following table includes loans held for investment and loans held for sale and displays the composition of the loan balances as of September 30, 2025 and December 31, 2024:

Table 5.1
As of September 30, 2025As of December 31, 2024
UnsecuritizedIn Consolidated TrustsTotalUnsecuritizedIn Consolidated TrustsTotal
(in thousands)
Agricultural Finance loans
Farm & Ranch$5,915,220 $2,205,213 $8,120,433 $5,414,732 $2,038,283 $7,453,015 
Corporate AgFinance1,452,398 — 1,452,398 1,381,674 — 1,381,674 
Total Agricultural Finance loans7,367,618 2,205,213 9,572,831 6,796,406 2,038,283 8,834,689 
Infrastructure Finance loans6,148,280 — 6,148,280 4,774,483 — 4,774,483 
Total unpaid principal balance(1)
13,515,898 2,205,213 15,721,111 11,570,889 2,038,283 13,609,172 
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments(323,781)— (323,781)(381,311)— (381,311)
Total loans13,192,117 2,205,213 15,397,330 11,189,578 2,038,283 13,227,861 
Allowance for losses(34,517)(823)(35,340)(22,594)(629)(23,223)
Total loans, net of allowance$13,157,600 $2,204,390 $15,361,990 $11,166,984 $2,037,654 $13,204,638 
(1)Unpaid principal balance is the basis of presentation in disclosures of outstanding balances for Farmer Mac's lines of business.

Allowance for Losses

The following table is a summary, by asset type, of the allowance for losses as of September 30, 2025 and December 31, 2024:

Table 5.2
September 30, 2025December 31, 2024
Allowance for LossesAllowance for Losses
(in thousands)
Loans:
Agricultural Finance loans
Farm & Ranch$11,134 $5,132 
Corporate AgFinance7,128 5,379 
Total Agricultural Finance loans
18,262 10,511 
Infrastructure Finance loans17,078 12,712 
Total$35,340 $23,223 
The following is a summary of the changes in the allowance for losses for the three and nine months ended September 30, 2025 and 2024:

Table 5.3
September 30, 2025September 30, 2024
Agricultural Finance loans
Infrastructure
Finance loans(3)
Agricultural Finance loans
Infrastructure
Finance loans(3)
Farm & Ranch(1)
Corporate AgFinance(2)
Total
Farm & Ranch(1)
Corporate AgFinance(2)
Total
(in thousands)
For the Three Months Ended
Beginning Balance$6,635 $6,943 $13,578 $16,378 $4,676 $4,014 $8,690 $7,810 
Provision for losses
4,067 2,811 6,878 700 156 1,755 1,911 1,540 
Charge-offs(1,243)(3,180)(4,423)— — — — — 
Recovery
1,675 554 2,229 — — — — — 
Ending Balance$11,134 $7,128 $18,262 $17,078 $4,832 $5,769 $10,601 $9,350 
For the Nine Months Ended
Beginning Balance$5,132 $5,379 $10,511 $12,712 $3,936 $2,948 $6,884 $9,147 
Provision for/(release of) losses
8,410 4,252 12,662 4,366 997 6,763 7,760 203 
Charge-offs(4,083)(3,180)(7,263)— (101)(3,942)(4,043)— 
Recovery
1,675 677 2,352 — — — — — 
Ending Balance$11,134 $7,128 $18,262 $17,078 $4,832 $5,769 $10,601 $9,350 
(1)As of September 30, 2025 and 2024, the allowance for losses for Agricultural Finance Farm & Ranch loans includes $2.3 million and $1.2 million allowance for collateral dependent assets secured by agricultural real estate, respectively.
(2)As of September 30, 2025 and 2024, the allowance for losses for Agricultural Finance Corporate AgFinance loans includes $1.0 million and $1.1 million allowance for collateral dependent assets secured by agricultural real estate, respectively.
(3)As of both September 30, 2025 and 2024, the allowance for losses for Infrastructure Finance loans includes no allowance for collateral dependent assets.

The $6.9 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the quarter ended September 30, 2025 consisted of:

•$3.3 million related to estimated decreases in land values of specific properties affected by ground water issues in California;
•$4.9 million related to increased loss estimates on certain agricultural storage and processing substandard loans; and
•$1.0 million related to increases in loan volume.

These increases to the provision were partially offset by recoveries of $2.2 million related to permanent planting loans that were previously charged off.

During third quarter 2025, we charged off $4.4 million attributable to the amount that we deemed uncollectible related to three borrowers.

The $0.7 million net provision to the allowance for the Infrastructure Finance portfolio during the quarter ended September 30, 2025 was primarily attributable to net volume growth and a credit downgrade on a single borrower within Broadband Infrastructure, partially offset by improved economic forecasts.

The $12.7 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the nine months ended September 30, 2025 was primarily attributable to the factors noted above, along with credit downgrades and net volume growth.
The $4.4 million net provision to the allowance for the Infrastructure Finance portfolio during the nine months ended September 30, 2025 was primarily attributable to net volume growth and credit downgrades.

The $1.5 million net provision to the allowance for the Infrastructure Finance portfolio during the quarter ended September 30, 2024 was primarily attributable to net volume growth. The $1.9 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the quarter ended September 30, 2024 was primarily attributable to risk rating downgrades.

The $0.2 million net provision to the allowance for the Infrastructure Finance portfolio during the nine months ended September 30, 2024 was primarily attributable to net volume growth. The $7.8 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the nine months ended September 30, 2024 was primarily attributable to credit downgrades related to two permanent planting borrower relationships and other risk rating downgrades.

The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of September 30, 2025 and December 31, 2024:

Table 5.4
As of September 30, 2025
Accruing
Current30-59 Days60-89 Days
90 Days and Greater(2)
Total Past Due
Nonaccrual Loans(3)(4)
Total Loans
(in thousands)
Loans(1):
Agricultural Finance loans
Farm & Ranch$7,873,393 $34,291 $10,809 $13,740 $58,840 $188,200 $8,120,433 
Corporate AgFinance1,398,816 — — — — 53,582 1,452,398 
Total Agricultural Finance loans9,272,209 34,291 10,809 13,740 58,840 241,782 9,572,831 
Infrastructure Finance loans6,135,564 — — — — 12,716 6,148,280 
Total $15,407,773 $34,291 $10,809 $13,740 $58,840 $254,498 $15,721,111 
(1)Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on the recorded investment of the loan.
(2)Primarily consists of loans in consolidated trusts with beneficial interests owned by third parties (single-class) that are 90 days or more past due.
(3)Includes loans that are 90 days or more past due, in foreclosure, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.
(4)Includes $39.5 million of nonaccrual loans for which there was no associated allowance. During the three and nine months ended September 30, 2025, Farmer Mac received $1.9 million and $5.0 million in interest on nonaccrual loans, respectively.
As of December 31, 2024
Accruing
Current30-59 Days60-89 Days
90 Days and Greater(2)
Total Past Due
Nonaccrual Loans(3)(4)
Total Loans
(in thousands)
Loans(1):
Agricultural Finance loans
Farm & Ranch$7,299,364 $16,478 $7,268 $6,359 $30,105 $123,546 $7,453,015 
Corporate AgFinance1,336,305 — — — — 45,369 1,381,674 
Total Agricultural Finance loans8,635,669 16,478 7,268 6,359 30,105 168,915 8,834,689 
Infrastructure Finance loans4,774,483 — — — — — 4,774,483 
Total $13,410,152 $16,478 $7,268 $6,359 $30,105 $168,915 $13,609,172 
(1)Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on the recorded investment of the loan.
(2)Includes loans in consolidated trusts with beneficial interests owned (single-class) by third parties that are 90 days or more past due.
(3)Primarily consists of loans that are 90 days or more past due, in foreclosure, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.
(4)Includes $41.5 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2024, Farmer Mac received $4.9 million in interest on nonaccrual loans.

Credit Quality Indicators

The following tables present credit quality indicators related to Agricultural Finance mortgage loans and Infrastructure Finance loans held as of September 30, 2025 and December 31, 2024, by year of origination:

Table 5.5
As of September 30, 2025
Year of Origination:
20252024202320222021PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Agricultural Finance - Farm & Ranch loans(1):
Internally Assigned Risk Rating:
Acceptable$1,136,666 $906,673 $463,709 $932,214 $1,462,387 $1,968,424 $387,741 $7,257,814 
Special mention(2)
160,944 154,433 35,925 43,054 30,912 55,304 22,243 502,815 
Substandard(3)
12,019 32,023 32,421 69,490 36,028 151,575 26,248 359,804 
Total$1,309,629 $1,093,129 $532,055 $1,044,758 $1,529,327 $2,175,303 $436,232 $8,120,433 
For the Three Months Ended September 30, 2025:
Current period charge-offs$— $— $— $— $721 $522 $— $1,243 
For the Nine Months Ended September 30, 2025:
Current period charge-offs$— $— $— $— $721 $1,687 $1,675 $4,083 
(1)Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.
(2)Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.  
(3)Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.
As of September 30, 2025
Year of Origination:
20252024202320222021PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Agricultural Finance - Corporate AgFinance(1):
Internally Assigned Risk Rating:
Acceptable$235,810 $185,210 $129,135 $58,287 $146,858 $256,876 $290,390 $1,302,566 
Special mention(2)
— 11,841 — — — 26,379 10,261 48,481 
Substandard(3)
— — 7,312 — 24,711 44,987 24,341 101,351 
Total$235,810 $197,051 $136,447 $58,287 $171,569 $328,242 $324,992 $1,452,398 
For the Three Months Ended September 30, 2025:
Current period charge-offs$— $— $— $— $3,180 $— $— $3,180 
For the Nine Months Ended September 30, 2025:
Current period charge-offs$— $— $— $— $3,180 $— $— $3,180 
(1)Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.
(2)Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.  
(3)Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

As of September 30, 2025
Year of Origination:
20252024202320222021PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Infrastructure Finance loans(1):
Internally Assigned Risk Rating:
Acceptable$1,048,515 $1,342,238 $582,192 $525,640 $183,246 $1,697,185 $689,950 $6,068,966 
Special mention(2)
— — — 7,152 — — — 7,152 
Substandard(3)
— — 26,542 45,620 — — — 72,162 
Total $1,048,515 $1,342,238 $608,734 $578,412 $183,246 $1,697,185 $689,950 $6,148,280 
For the Three Months Ended September 30, 2025:
Current period charge-offs$— $— $— $— $— $— $— $— 
For the Nine Months Ended September 30, 2025:
Current period charge-offs$— $— $— $— $— $— $— $— 
(1)Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.
(2)Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.  
(3)Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.
As of December 31, 2024
Year of Origination:
20242023202220212020PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Agricultural Finance - Farm & Ranch loans(1):
Internally Assigned Risk Rating:
Acceptable$987,444 $525,559 $1,079,933 $1,577,305 $1,019,779 $1,287,334 $404,950 $6,882,304 
Special mention(2)
139,297 34,290 32,886 24,204 7,533 23,099 22,087 283,396 
Substandard(3)
8,077 28,790 52,350 24,733 60,418 92,594 20,353 287,315 
Total$1,134,818 $588,639 $1,165,169 $1,626,242 $1,087,730 $1,403,027 $447,390 $7,453,015 
For the Three Months Ended September 30, 2024:
Current period charge-offs$— $— $— $— $— $— $— $— 
For the Nine Months Ended September 30, 2024:
Current period charge-offs$— $— $— $101 $— $— $— $101 
(1)Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.
(2)Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.  
(3)Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

As of December 31, 2024
Year of Origination:
20242023202220212020PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Agricultural Finance - Corporate AgFinance loans(1):
Internally Assigned Risk Rating:
Acceptable$210,807 $152,918 $64,860 $235,493 $80,085 $161,354 $262,295 $1,167,812 
Special mention(2)
— 37,010 — 14,557 75,440 — 7,158 134,165 
Substandard(3)
— 7,309 7,652 — 14,335 33,479 16,922 79,697 
Total$210,807 $197,237 $72,512 $250,050 $169,860 $194,833 $286,375 $1,381,674 
For the Three Months Ended September 30, 2024:
Current period charge-offs$— $— $— $— $— $— $— $— 
For the Nine Months Ended September 30, 2024:
Current period charge-offs$— $— $— $— $— $— $3,942 $3,942 
(1)Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.
(2)Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.  
(3)Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.
As of December 31, 2024
Year of Origination:
20242023202220212020PriorRevolving Loans - Amortized Cost BasisTotal
(in thousands)
Infrastructure Finance loans(1):
Internally Assigned Risk Rating:
Acceptable$1,158,427 $521,143 $578,882 $174,232 $574,135 $1,229,626 $461,162 $4,697,607 
Special mention(2)
— — 34,388 — — — — 34,388 
Substandard(3)
— 13,356 29,132 — — — — 42,488 
Total $1,158,427 $534,499 $642,402 $174,232 $574,135 $1,229,626 $461,162 $4,774,483 
For the Three Months Ended September 30, 2024:
Current period charge-offs$— $— $— $— $— $— $— $— 
For the Nine Months Ended September 30, 2024:
Current period charge-offs$— $— $— $— $— $— $— $— 
(1)Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.
(2)Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.  
(3)Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.